Where can I find a legitimate direct selling company to join?
© 2012, Jeffrey Babener
Prospective distributors often ask: Where can I find a legitimate direct selling company to join? Perhaps they are
looking for a new company with a smaller network of people or perhaps they are just weighing the differences and
benefits of different companies.
Either way there are legitimate sources that can help you find the company that has a product you want to sell, a
compensation plan that fits your needs, and a personality that’s right for you.
Firstly, the best place to search for a credible company is at a reputable direct selling association, like the Direct
Selling Association or the Direct Selling Women’s Association. There you will find a list of members and pending
members that pledge to abide by the organization’s strict code and ethics policy.
These associations often organize the member companies by product or alphabetically. There you are likely to find
a company that matches your tastes and needs.
There are also collections of companies available online, some with extensive information on compensation plans,
history, and products. One such source is available here and contains over 600 company profiles, including
information on products, compensation, history, and sales base. Not all of these companies will be members of an
association like the Direct Selling Association; however, it is a good place to compare payouts, products, and
programs. And since direct selling companies are being closed and opened all the time extensive lists offer a wide
informational selection of company diversity in just one place.
There are many direct selling companies that aren’t on industry code of ethics lists but are still offer legitimate
programs. There isn’t a universal flawless algorithm that determines a company’s credibility, but there are a few red
flags that industry leaders suggest you look out for when you consider joining a direct selling company.
Industry leaders suggest there are some red flags that experienced network marketers can spot themselves in a
possible illegitimate company. One such leader suggests being wary of “gifting programs,” (more information on
gifting programs is available here) which offer no tangible products but cash chains, with distributors required to get
cash from other distributors, or offer unsubstantial products like prayers or wishes. The second red flag that
industry leaders suggest looking out for are “pyramid schemes” which are disguised as MLM companies. (An
example of a pyramid scheme is available here and more information on pyramid schemes is located here.) They
differ from gifting programs in that they usually offer some meager product to differentiate themselves. Lastly, and
perhaps most importantly, industry professionals suggest being cautious of MLM companies that emphasize
payouts based on personal product consumption on behalf of distributors and not retail sales. These are also
illegal and can commonly go years without being detected.
There are plenty of legitimate direct selling companies and MLM programs to choose from. By performing research
and learning to recognize red flags, you have a much better chance of choosing a legal and rewarding company.
Visit www.mlmlegal.com for vast amounts of direct selling industry information.
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© Jeffrey Babener, 2013